Credit Suisse and Merrill Lynch have launched syndication of a $375 million credit for Angiotech Pharmaceuticals. The deal is being used to partially fund the acquisition of American Medical Instruments Holdings, a manufacturer of single-use medical devices. Angiotech is acquiring AMI for $785 million. Syndication launched March 2.
The financing comprises a five-year, $75 million revolver and a seven-year, $300 million term loan "B." Pricing on both tranches is LIBOR plus 1 3/4%. Moody's Investors Service rated the loans Ba3 and Standard & Poor's assigned an equivalent rating of BB-.
Headquartered in Vancouver, British Columbia, Angiotech is a specialty pharmaceutical company that develops technologies to help improve medical devices. Calls to Thomas Bailey, cfo at Angiotech, were not returned. A spokeswoman at Merrill Lynch declined comment and a banker at Credit Suisse could not be reached.